The Government has recently passed legislation, Treasury Laws Amendment (Putting Members’ Interests First) Act 2019, in order to ensure that members are not paying premiums for insurance cover that may inappropriately erode their retirement savings. This new legislation becomes effective on 1 April 2020.
When you join Local Government Super’s Accumulation Scheme, you automatically receive Basic Insurance Cover. In accordance with the new laws, we are required to cancel your Basic Insurance Cover on 1 April 2020 if your account balance has not reached $6,000 at any time between 1 November 2019 and 31 March 2020. If you are impacted by the PMIF reforms, you would have received a letter from us.
New members joining Local Government Super’s Accumulation Scheme won’t automatically receive Basic Insurance Cover until they become eligible. To be eligible to receive Basic Insurance Cover, you must:
If you join the fund after 1 April 2020, you will need to tell us that you want to receive Basic Insurance Cover before you become eligible. You can do so by completing the Opt-in to insurance cover form included in your welcome kit.
If you have not reviewed your insurance cover recently, now may be a good time to check if it suits your current lifestyle. If you are unsure about whether or not you should continue to have insurance cover, we encourage you to seek professional financial advice. You can use our Insurance Needs calculator to work out how much insurance cover you may need.
If you have any questions, please call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.